Tenille made $2,000 on a summer job. She put it in a bank account paying simple interest of 5% annually. If Tenille lets her money earn interest for 10 years, how much will she have? (1 point)
To calculate simple interest, we use the formula:
Interest = Principal x Rate x Time
In this case, the principal is $2,000, the rate is 5% (or 0.05 in decimal form) and the time is 10 years.
Therefore, the interest earned after 10 years is:
Interest = $2,000 x 0.05 x 10 = $1,000
To find the total amount in Tenille's account after 10 years, we add the interest earned to the principal:
Total Amount = Principal + Interest = $2,000 + $1,000 = $3,000